CHICAGO — Billionaire activist Bill Ackman told a meeting of roughly 100 people, many former Herbalife distributors, on Monday evening that the law governing pyramid schemes needs to be changed.

“This kind of fraud should not be allowed to occur,” Ackman told the group of Hispanics, many who claim they were defrauded by the Los Angeles company.

Ackman is now entering the third year of his much-publicized $1 billion short of Herbalife — claiming the company is a pyramid scheme.

The company denies the allegation.

While several federal and state regulators have started a probe into Ackman’s claims, the hedge fund mogul told those at the meeting at a South Side church that the pace of the government’s response has made him “a bit frustrated.”

“We have the government’s attention,” he said. “I feel the day [when Herbalife is shut down] is coming sooner,” he said.

Bill AckmanReuters

While Ackman has yet to make a substantial profit on his short, the stock is down sharply over the last several months. At least one billionaire investor — George Soros — has sold out. Shares closed Monday at $32.73, down 1.8 percent.

Ackman said he might use any profits he may ring up from his Herbalife short to lobby to change the law on pyramid schemes because “there has been an incredible proliferation of pyramid schemes since the [Federal Trade Commission] lost its case against Amway in 1980.”

An hour before the event was supposed to start, three bus loads of pro-Herbalife supporters protested outside, but dispersed after the cops told them not to block the church entrance.

Ackman was invited to the meeting by Julie Contreras, the firebrand activist with the United League of Latin American Citizens, itself a vocal critic of Herbalife.

Ackman’s talk included the Spanish version of a short primer on pyramid schemes, which was produced by his Pershing Square hedge fund. A likeness of Herbalife CEO Michael Johnson is shown atop a pyramid, though he is not named.